Counter-Strike” Strikes Gold: Nearly $1 Billion Revenue Surge in 2023 from Randomized Loot Boxes

Last year, “Counter-Strike” amassed close to $1 billion in revenue from loot boxes, which are cases containing randomly assorted items of various values. This contentious feature, often likened to gambling by regulators, has players spending substantial amounts on in-game items. In the realm of “Counter-Strike,” a virtual weapon skin even fetched a staggering sum of over $500,000 last year. According to CS2 Case Tracker, which monitors “Counter-Strike” revenue, the game generated a staggering $980 million solely from loot box “keys.”

It’s important to note that this significant figure excludes additional purchases made through Steam or collection packs available in the “Counter-Strike” store, which encompass the keys, as reported by The Daily Dot.

While loot boxes prove lucrative for game studios, a longstanding debate among gamers and regulators revolves around their potential promotion of underage gambling. Despite varying mechanics across games, loot boxes generally involve purchasing a box with in-game currency or real money, yielding a randomized reward. Typically cosmetic in nature, these rewards offer new clothing items or appearances for in-game items without providing tangible advantages in gameplay.

In 2020, the UK Parliament’s gambling report identified approximately 55,000 individuals aged 11 to 15 with gambling issues in the UK and recommended reclassifying “loot boxes” as gambling under the country’s 2005 Gambling Act. A study by researchers at The University of York discovered that 71% of the top games on Steam from 2010 to 2019 featured purchasable loot boxes.

Despite concerns, the UK’s Gambling Commission has expressed limitations in addressing loot boxes under current legislation. The Department for Culture, Media, and Sport continues to actively scrutinize loot boxes and released a set of 10 rules in July 2023 for developers to follow, aiming to “enhance player protection.” Recommendations include restricting those under 18 from purchasing loot boxes and disclosing the presence of loot boxes in a game before purchase and download.

In April 2020, the Entertainment Software Ratings Board, responsible for video game ratings, introduced a rating section highlighting games with randomized in-game purchases, encompassing “loot boxes, gacha games, item or card packs, prize wheels, treasure chests, and more.”